Concerning H20

With the confirmation of water on at least two other major bodies in our solar system so far (Mars, Moon), has this expanded the range of the "habitable zone" when searching for locations of possible life in the solar system?

As near as I can tell, the evidence for liquid water on Mars largely consists of evidence from formations that we see on Mars that look very similar to formations on Earth which are, on Earth, formed only with water. However, as this paper shows, it is conceivable that other processes are producing these formations on Mars instead.

Regardless, the possibility of liquid water on Mars is one significant reason why probes we send there frequently look for life. We expect that if there is life on Mars, it would consist of a few hardy microbes.